HomeMy WebLinkAboutReso 16-26 Renewing MBTBID - signed1
RESOLUTION NO. 16-26
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
DECLARING RESULTS OF MAJORITY PROTEST PROCEEDINGS AND
RENEWING THE MORRO BAY TOURISM BUSINESS IMPROVEMENT
DISTRICT (MBTBID)
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City of Morro Bay (City) created the MBTBID on June 8, 2021 by
Resolution No. 28-21; and
WHEREAS, the MBTBID was created for a five (5) year term which ends on June 30,
2026; and
WHEREAS, the Property and Business Improvement District Law of 1994, Streets and
Highways Code § 36600 et seq., authorizes the City to renew business improvement districts
upon petition by a weighted majority of the business owners located within the boundaries of the
district; and
WHEREAS, lodging and vacation rental business owners who will pay more than fifty
percent (50%) of the proposed assessment, as weighted according to the amount of the
assessment to be paid by the petitioner, within the boundaries of the MBTBID have petitioned the
City Council of the City of Morro Bay (Council) to renew the MBTBID; and
WHEREAS, included with the petitions was a Management District Plan (Plan) summary
that describes the proposed assessment to be levied on all lodging and vacation rental
businesses, (assessed businesses), existing and in the future, within the MBTBID to pay for
Sales, Marketing, Communications, and Destination Development programs, and other
improvements and activities set forth in the Plan; and
WHEREAS, the assessed businesses within the MBTBID will receive a specific benefit
from the activities and improvements set forth in the Plan; and
WHEREAS, on January 27, 2026 at 5:30 PM at the Veterans Memorial Building located
at 209 Surf Street, Morro Bay, CA 93442, the Council adopted a Resolution of Intention,
Resolution No. 03-26; and
WHEREAS, the public meeting and public hearing to consider the renewal of the MBTBID
have been properly noticed in accordance with Streets and Highways Code §36623; and
WHEREAS, on February 24, 2026 at 5:30 PM at the Veterans Memorial Building located
at 209 Surf Street, Morro Bay, CA 93442, the Council held a public meeting regarding the renewal
of the MBTBID, and the Council heard and received objections and protests, if any, to the renewal
of the MBTBID and the levy of the proposed assessment; and
WHEREAS, on March 24, 2026 at 5:30 PM at the Veterans Memorial Building located at
209 Surf Street, Morro Bay, CA 93442, the Council held a public hearing regarding the renewal
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of the MBTBID, and the City Council heard and received all objections and protests, if any, to the
renewal of the MBTBID and the levy of the proposed assessment; and
WHEREAS, the City Clerk has determined that there was no majority protest. A majority
protest is defined as written protests received from owners of businesses in the renewed MBTBID
which would pay fifty percent (50%) or more of the assessments proposed to be levied. Protests
are weighted based on the assessment proposed to be levied on each assessed business; and
WHEREAS, the City bears the burden of proving by a preponderance of the evidence that
an assessment imposed for a specific benefit or specific government service is not a tax, that the
amount is no more than necessary to cover the costs to the City in providing the specific benefit
or specific government service, and that the manner in which those costs are allocated to a payor
bear a fair or reasonable relationship to the specific benefits or specific government services
received by the payor.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY DOES
HEREBY RESOLVE AS FOLLOWS:
1. The recitals set forth herein are adopted by the City Council as findings and they
are true and correct.
2. The MBTBID is hereby renewed for a ten (10) year term, beginning July 1, 2026,
or as soon as possible thereafter, and ending ten (10) years from its start date, unless renewed
pursuant to Streets and Highways Code § 36660.
3. The Plan dated November 18, 2025 is hereby adopted and approved.
4. The activities to be provided to benefit businesses in the MBTBID will be funded
by the levy of the assessment. The revenue from the assessment levy shall not be used: to
provide activities that directly benefit businesses outside the MBTBID; to provide activities or
improvements outside the MBTBID; or for any purpose other than the purposes specified in this
Resolution, the Resolution of Intention, and the Plan. Notwithstanding the foregoing,
improvements and activities that must be provided outside the MBTBID boundaries to create a
specific benefit to the assessed businesses may be provided, but shall be limited to marketing or
signage pointing to the MBTBID.
5. The Council finds as follows:
a) The activities funded by the assessment will provide a specific benefit to assessed
businesses within the MBTBID that is not provided to those not paying the assessment.
b) The assessment is a charge imposed for a specific benefit conferred or privilege
granted directly to the payor that is not provided to those not charged, and which does not
exceed the reasonable costs to the local government of conferring the benefit or granting
the privilege.
c) The assessment is a charge imposed for a specific government service or product
provided directly to the payor that is not provided to those not charged, and which does
not exceed the reasonable costs to the local government of providing the service or
product.
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d) Assessments imposed pursuant to the MBTBID are levied solely upon the
assessed business, and the business owner is solely responsible for payment of the
assessment when due. If the owner chooses to collect any portion of the assessment from
a transient, that portion shall be specifically called out and identified for the transient in
any and all communications from the business owner as the “MBTBID Assessment” or
“Tourism Assessment” as specified in the Plan.
6. The assessments levied for the MBTBID shall be applied to Sales, Marketing,
Communications, and Destination Development programs to market assessed businesses as
tourist, meeting and event destinations, and other improvements and activities as set forth in the
Plan.
7. Assessments levied on assessed businesses pursuant to this Resolution shall be
levied on the basis of benefit. Because the services provided are intended to increase demand
for overnight tourism, an assessment based on gross short-term sleeping room rental revenue is
the best measure of benefit.
8. The annual assessment rate is three percent (3%) of gross short-term sleeping
room rental revenue. Based on the benefit received, assessments will not be collected on stays
of more than thirty (30) consecutive days; and on any officer or employee of a foreign government
who is exempt by reason of express provision of federal law or international treaty.
9. The assessments for the entire MBTBID will total approximately $1,200,000 in
year one (1).
10. Bonds shall not be issued to fund the MBTBID.
11. The MBTBID shall include all lodging and vacation rental businesses, existing and
in the future, available for public occupancy located within the boundaries of the City. A boundary
map is attached hereto and incorporated herein by reference.
12. The assessments shall be used for the purposes set forth above and any funds
remaining at the end of any year may be used in subsequent years in which the MBTBID
assessment is levied as long as they are used consistent with the requirements set forth herein.
13. The assessments to fund the activities and improvements for the MBTBID will be
collected by the City on a monthly basis, and in accordance with Streets and Highways Code
§36631.
14. The Council, through adoption of this Resolution and the Plan, has the right
pursuant to Streets and Highways Code §36651, to identify the body that shall implement the
proposed program, which shall be the Owners’ Association of the MBTBID as defined in Streets
and Highways Code §36612. The Council has determined that Visit Morro Bay (VMB) shall be
the MBTBID Owners’ Association.
15. VMB, pursuant to Streets and Highways Code §36650, shall cause to be prepared
a report for each fiscal year, except the first year, for which assessments are to be levied and
collected to pay the costs of the improvements and activities described in the report. The first
report shall be due after the first year of operation of the MBTBID.
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16. The MBTBID renewed pursuant to this Resolution will be subject to any
amendments to the Property and Business Improvement District Law of 1994 (California Streets
and Highways Code §36600 et. seq.).
17. The City Clerk, or his or her designee, is directed to take all necessary actions to
complete the renewal of the MBTBID and to levy the assessments.
18. This Resolution shall take effect immediately upon its adoption by the Council.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Morro
Bay on the 24th day of March 2026 by the following vote:
AYES: Wixom, Eckles, Edwards, Landrum, Luffee
NOES: None
ABSENT: None
ABSTAIN: None
RECUSE: None
_____________________________
CARLA WIXOM, Mayor
ATTEST:
DANA SWANSON, City Clerk
Carla Wixom (Mar 25, 2026 18:19:43 PDT)
Carla Wixom
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Boundary Map
Reso 16-26 Renewing MBTBID
Final Audit Report 2026-03-26
Created:2026-03-26
By:Heather Goodwin (hgoodwin@morrobayca.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAe74Eu9ur2BMwJ8PbIcKa5dKtCQaC1jlI
"Reso 16-26 Renewing MBTBID" History
Document created by Heather Goodwin (hgoodwin@morrobayca.gov)
2026-03-26 - 0:58:06 AM GMT
Document emailed to cwixom@morrobayca.gov for signature
2026-03-26 - 0:58:45 AM GMT
Email viewed by cwixom@morrobayca.gov
2026-03-26 - 1:19:09 AM GMT
Signer cwixom@morrobayca.gov entered name at signing as Carla Wixom
2026-03-26 - 1:19:41 AM GMT
Document e-signed by Carla Wixom (cwixom@morrobayca.gov)
Signature Date: 2026-03-26 - 1:19:43 AM GMT - Time Source: server
Document emailed to Dana Swanson (dswanson@morrobayca.gov) for signature
2026-03-26 - 1:19:44 AM GMT
Email viewed by Dana Swanson (dswanson@morrobayca.gov)
2026-03-26 - 3:06:40 PM GMT
Document e-signed by Dana Swanson (dswanson@morrobayca.gov)
Signature Date: 2026-03-26 - 3:07:37 PM GMT - Time Source: server
Agreement completed.
2026-03-26 - 3:07:37 PM GMT